There is no doubt about it a leasehold flat or house in Bournville is a wasting asset as a result of the shortening lease. If the residual term has, more than one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Bournville will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bournville with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bournville,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bournville valuers.
Alex was the the leasehold owner of a studio flat in Bournville on the market with a lease of a few days over 61 years outstanding. Alex informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr Harrison Wilson who, having completed a one bedroom apartment in Bournville in July 2011. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Bournville with an extended lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated on 17 March 2103. Considering the 78 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
Last Autumn we were contacted by Dr T Collins , who purchased a garden apartment in Bournville in June 1996. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Bournville with a long lease were worth £191,000. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2083. Having 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of costs.